Hundred and seventy-fifth session

Transcription

1 ex United Nations Educational, Scientific and Cultural Organization Executive Board Hundred and seventy-fifth session 175 EX/31 PARIS, 11 August 2006 Original: English Item 32 of the provisional agenda REPORT BY THE DIRECTOR-GENERAL ON THE BUDGETARY SITUATION OF THE ORGANIZATION FOR (32 C/5) AFTER THE CLOSURE OF ACCOUNTS AS AT 31 DECEMBER 2005 AND MANAGEMENT CHART FOR PROGRAMME EXECUTION IN BASED ON THE CLOSED ACCOUNTS 175 EX/31 contains: SUMMARY A. Report by the Director-General on the budgetary situation of the Organization for (32 C/5) after the closure of accounts as at 31 December (i) (ii) General provides herein a report on the budgetary situation of the Organization for the biennium. In accordance with paragraph A(f) of the Appropriation Resolution for (32 C/Resolution 85), the Director-General also reports on the adjustments and transfers made at the end of the biennium for the purpose of closing the accounts for (iii) Decision proposed: paragraph 12. B. Management Chart for Programme Execution in based on closed accounts.

2 (i) CONTENTS INTRODUCTION A. REPORT BY THE DIRECTOR-GENERAL ON THE BUDGETARY SITUATION OF THE ORGANIZATION FOR (32 C/5) AFTER THE CLOSURE OF ACCOUNTS AS AT 31 DECEMBER 2005 I. Budgetary situation of the Organization for Table 1 Budgetary situation as at 31 December 2005 II Adjustments and transfers between appropriation lines for the purpose of closing the accounts Table 2 End-of-biennium adjustments under staff costs Table 3 End-of-biennium adjustments under activity costs III Draft decision ANNEX STATUS OF THE REGULAR BUDGET FOR AS AT 31 DECEMBER 2005 B. MANAGEMENT CHART FOR PROGRAMME EXECUTION IN BASED ON THE CLOSED ACCOUNTS Table 1 Overall implementation by principal appropriation line (regular budget and extrabudgetary resources including staff costs and Participation Programme) Table 2(A) Programme implementation by principal appropriation line and by principal source of funding (regular budget excluding staff costs and extrabudgetary resources) Table 2(B) Programme implementation by principal appropriation line on the carry-over funds Table 2(C) Programme implementation by principal appropriation line on the assessed contribution from the United States of America Table 3 Implementation of decentralized funds by principal appropriation line and by region (excluding staff costs) Table 4 Expenditures under temporary assistance, travel and contractual services (Regular Budget) Table 5 Participation Programme implementation by region Table 6 Post situation and staff costs expenditures Chart 1 Extrabudgetary operational programmes by funding source and by major programme Chart 2 Extrabudgetary operational programme: allocation vs. expenditures Table 7 Execution of extrabudgetary programmes by funding source Table 8 Execution of extrabudgetary programmes by donor and by region Table 9 Execution of extrabudgetary programmes by sector Table 10 Extrabudgetary resources managed by UNESCO and its institutes, broken down by donor Table 11 Breakdown of funds managed by UNESCO institutes ANNEX II DETAILED STATUS REPORT ON THE REGULAR BUDGET BY MAIN LINE OF ACTION

3 175 EX/31 INTRODUCTION 1. This document contains: Part A Report by the Director-General on the budgetary situation of the Organization for (32 C/5) after the closure of accounts as at 31 December 2005; Part B Management Chart for programme execution in based on the closed accounts. 2. Part A presents the final budgetary situation for after the account closure. It explains all budget transfers and additional appropriations to the regular budget that were approved by the Executive Board, and presents the expenditures for each Appropriation line, therefore showing surplus or deficit for each line. 3. Management Chart as at the end of the biennium has normally been presented to the Spring session of the Executive Board following the closure. However, due to time constraints arising from the date of the closure of the accounts and the advancement of the date of the 174th session of the Executive Board, it was decided that the Management Chart would be combined with the Report by the Director-General on the budgetary situation of the Organization for (32 C/5) after the closure of accounts as at 31 December 2005 and presented at this 175th session. 4. As in the document presented to the previous sessions of the Executive Board, the Management Chart intends to show a holistic status of both regular and extrabudgetary funds, mainly represented under Tables 1, 2 and 3. The expenditures for extrabudgetary resources, which usually finance multi-year projects, are presented on an annual basis in order to reflect the actual management cycle of extrabudgetary resources. 5. Also in line with the previous Management Chart, the analysis by item of expenditure focuses on three major items that Member States have wished to examine in particular, i.e. temporary assistance, mission travel and contractual services (ref: 166 EX/Decision 3.1.1). The report is set out in Table As usual, the regular budget activities in Annex II for which expenditure rates are more than 115% or less than 85% are provided with explanations in conformity with 160 EX/Decision and 164 EX/Decision 3.1.1, which invited the Director-General to identify and explain, in a separate section of future reports on the execution of the Programme and Budget, those activities that vary from expected expenditures by a rate of more than 15%.

4 175 EX/31 page 3 PART A REPORT BY THE DIRECTOR-GENERAL ON THE BUDGETARY SITUATION OF THE ORGANIZATION FOR (32 C/5) AFTER THE CLOSURE OF ACCOUNTS AS AT 31 DECEMBER 2005 I BUDGETARY SITUATION OF THE ORGANIZATION FOR The General Conference, at its 32nd session, approved an appropriation of $610 million for (32 C/Resolution 85). This appropriation was subsequently increased to $620,762,076 as at 31 December 2005, by the carryover of the unspent balance from the budget amounting to $2,109,926 (169 EX/Decision 6.3) and by the addition of donations and special contributions received by the Director-General amounting to $8,652,150, as follows: 32 C/5 Approved Appropriation Reference 169 EX/Decision 6.3 (Carryover of unspent balance) 170 EX/Decision 3.1 (Donations and Special Contributions) 171 EX/Decision 3 (Donations and Special Contributions) 172 EX/Decision 3 (Donations and Special Contributions) 174 EX/Decision 23 (Donations and Special Contributions) Total, Donations and Special Contributions Amount appropriated to regular budget $ 610,000,000 1,926,282 2,810,138 2,181,797 1,733,933 2,109,926 8,652,150 Total 620,762,076 Transfers effected between appropriation lines 2. During the course of the biennium, the Executive Board approved proposals submitted by the Director-General concerning a number of transfers between appropriation lines that did not affect the overall level of the budget: (a) financing additional costs due to statutory factors and inflation, through transfers from Part IV of the budget Anticipated Cost Increases to Parts I-III: Decision of the Executive Board Amount $ 169 EX/Decision 6.2 2,340, EX/Decision ,000, EX/Decision 3 7,480, EX/Decision 3 937,300 Total 13,757,300

5 175 EX/31 page 4 (b) financing additional costs due to reclassifications of posts under Professional and General Services categories approved by the Director-General, through transfers from the Reserve for Reclassifications. (171 EX/Decision 3). The entire amount of $1.5 million under the Reserve was transferred to various appropriation lines under Parts I-III. Expenditure and obligations 3. In the course of the closure process, particular attention was paid to verifying the validity of the unliquidated obligations by the Bureau of the Budget and the Office of the Comptroller in collaboration with the Office of Internal Oversight and the External Auditor. After these exercises, the accounts closed as at 31 December 2005 shows expenditure and obligations amounting to $620,390,754, as follows: Part 32 C/5 Approved Budget Approved Budget as adjusted Expenditure/ Obligations Unspent balance $ $ $ $ Parts I III Part IV Reserve for reclassifications 594,742,700 13,757,300 1,500, ,762, ,390, , Total 610,000, ,762, ,390, , It should be noted that the total expenditure/obligations figure of $620.4 million contains provisions (unliquidated obligations) amounting to $32.1 million, which will remain valid for a further period of twelve months in order to liquidate the outstanding legal obligations of the financial period, in accordance with Article 4.3 of the Financial Regulations. 5. The budget thus showed an unspent balance of $371,322 as at 31 December 2005 (details are provided in Table 1 entitled Budgetary Situation as at 31 December 2005).

6 TABLE EX/31 page 5 BUDGETARY SITUATION AS AT 31 DECEMBER 2005 Main Appropriation Line 32 C/5 Approved as adjusted Expenditures/ Undelivered orders as at Unspent balance/(deficit) PART I GENERAL POLICY AND DIRECTION $ $ $ A. Governing bodies 1. General Conference 6,418,600 6,058, , Executive Board 7,728,600 7,575, ,677 Total, Part I.A 14,147,200 13,634, ,627 B. Direction 18,615,900 17,425,548 1,190,352 (Including: Directorate; Office of the Director-General; Internal Oversight; International Standards and Legal Affairs) C. Participation in the Joint Machinery of the United Nations System 7,355,863 6,699, ,401 TOTAL, PART I 40,118,963 37,759,583 2,359,380 PART II PROGRAMMES AND PROGRAMME RELATED SERVICES A. Programmes Major Programme I - Education Major Programme II - Natural Sciences Major Programme III - Social and Human Sciences Major Programme IV - Culture Major Programme V - Communication and Information UNESCO Institute for Statistics 113,602, ,024, ,388 61,831,043 59,604,908 2,226,135 34,082,132 32,280,449 1,801,683 55,698,377 54,104,841 1,593,536 36,511,868 36,612,846 (100,978) 9,020,000 9,020,000 - Field - Management of decentralized programmes 31,532,300 39,766,530 (8,234,230) Total, Part II.A 342,278, ,413,660 (2,135,466) B. Participation Programme 23,000,000 23,064,621 (64,621) C. Programme Related Services 1. Coordination of action to benefit Africa 3,264,800 3,278,876 (14,076) 2. Fellowships Programme 2,559,100 2,063, , Public information 15,397,900 14,881, , Strategic planning and programming monitoring 7,655,066 7,177, , Budget preparation and monitoring 4,265,300 4,465,145 (199,845) Total, Part II.C 33,142,166 31,867,030 1,275,136 TOTAL, PART II 398,420, ,345,311 (924,951) PART III SUPPORT FOR PROGRAMME EXECUTION AND ADMINISTRATION A. Field management and coordination 21,252,990 22,749,339 (1,496,349) B. External relations and cooperation 23,758,800 21,104,677 2,654,123 C. Human resources management 32,186,900 32,965,488 (778,588) D. Administration, maintenance and renovation of Headquarters premises 105,024, ,466,356 (1,442,293) TOTAL, PART III 182,222, ,285,860 (1,063,107) TOTAL, PARTS I - III 620,762, ,390, ,322 Reserve for reclassifications PART IV ANTICIPATED COST INCREASES TOTAL 620,762, ,390, ,322

7 175 EX/31 page 6 II ADJUSTMENTS AND TRANSFERS BETWEEN APPROPRIATION LINES FOR THE PURPOSE OF CLOSING THE ACCOUNTS 6. Based on the budgetary situation of the Organization as at 31 December 2005 presented on the previous page, budgetary adjustments and transfers had to be made in order to close the accounts for the biennium by taking into account the actual expenditure under each Appropriation Line. The adjustments and transfers made for the purpose of closing the accounts under staff costs and activity costs are reflected in Tables 2 and 3 respectively. The evolution of global budget including the adjustments/transfers is recapitulated in Annex I. The accounts for the biennium were officially closed in early February 2006 and were presented to the External Auditors for review. The following comments present, in summary fashion, background information for major surplus and deficits that occurred. Staff costs 7. The budget provisions for staff costs were calculated on the basis of average standard costs, with a fixed reduction for staff turnover of 3% for each post. Under these conditions, it is natural that the actual expenditure did not always correspond to the budget provisions under each appropriation line, as the result of various factors such as detailed personal status of the incumbents, the vacancy situation of each Sector and Unit, etc. Despite a very strict budgetary control applied, this inevitably resulted in differences between budgets and actual expenditures at the end of the biennium. The actual staff costs expenditure at 31 December 2005 amounted to $334,866,805. Compared with the total staff costs allocation of $335,440,600, this expenditure represents a saving of $0.6 million, i.e. 0.17% of the total appropriation for staff costs. 8. In terms of each appropriation line, major deficits appeared under Part II.A Field Management of decentralized programmes (BFC Field), Part III A. Field management and coordination (BFC HQ), Part III.C. Human resources management (HRM). These deficits can be explained as follows: BFC Field: The deficit of $8.2 million can be attributed to several factors. Firstly, certain separation indemnities that were paid mainly for directors/heads of the field offices were not foreseen at the time of budgeting, and non-budgeted interim personnel costs for Guatemala and Brazzaville office were regularized during the course of the biennium. These amounted to $2.4 million. Secondly, the deficit is also due to some $1 million transferred from BFC Field staff costs (Part II.A Field Management of decentralized programmes) to BFC field running costs (Part III.A Field management and coordination) authorized during the 174th session of the Executive Board to cover the anticipated shortfall in field office running costs which was considered as an urgent issue, such as rental and maintenance of premises, hazard pay, utilities, communication and freight, and purchase/replacement of office equipment. Thirdly, following the provisional restructuring, some posts in New York and Geneva office, which amounts to $1.8 million, were transferred from Part III.B. External relations and cooperation (ERC) to BFC Field. Due to the provisional nature of the transfer, the budget was not transferred between the two appropriation lines; however, given the nature of the payroll system, the expenditures of the staff concerned were charged to BFC Field and thus subsequently resulted in increasing the deficit under BFC Field. (This also explains, on the other hand, the cause of a relatively large surplus under the staff costs of ERC.) The remaining deficit is

8 175 EX/31 page 7 considered to be due to inevitable requirements closely related to BFC Field such as hardship allowance and other entitlements which turned out to be costly. BFC HQ: HRM: The deficit of $1.2 million under BFC HQ is mainly due to the absorption of unforeseen repatriation costs for directors/heads of field offices in the framework of the rotation policy for which the initial budgets proved to be insufficient. The deficit of $1.1 million has arisen mainly from unforeseen but indispensable requirements, namely ILO case settlement payments, additional expenditures related to pilot project for Claim Administration for Medical Benefits Fund, UNESCO Children s Club, indemnities payment and Young Professional Programme. 9. The possibilities of these deficits were detected at an early stage, and thus special attention was paid to the monitoring of the staff costs expenditures with a view to compensating them within the overall staff costs budget. For this purpose, the staff costs were carefully managed, in particular, with regard to management of post vacancy. It was also ensured that the adjustments of several of these items were taken into account in preparation of the 33 C/5 ( ). The adjustments made by each major appropriation line for the purpose of closing the accounts for Staff Costs are summarized in Table 2.

9 175 EX/31 page 8 TABLE 2 END-OF-BIENNIUM ADJUSTMENTS UNDER STAFF COSTS Main Appropriation Line PART I GENERAL POLICY AND DIRECTION 32 C/5 Approved as adjusted Expenditures/ Undelivered orders as at TO (Deficit) END-OF-BIENNIUM ADJUSTMENTS FROM (Unspent balance) $ $ $ $ A. Governing bodies 1. General Conference 663, , , Executive Board 1,461,500 1,542,006 (80,506) Total, Part I.A 2,124,800 2,094,138 (80,506) 111,168 B. Direction 16,145,000 14,071,681-2,073,319 (Including: Directorate; Office of the Director-General; Internal Oversight; International Standards and Legal Affairs) C. Participation in the Joint Machinery of the United Nations System PART II PROGRAMMES AND PROGRAMME RELATED SERVICES TOTAL, PART I 18,269,800 16,165,819 (80,506) 2,184,487 A. Programmes Major Programme I - Education Major Programme II - Natural Sciences Major Programme III - Social and Human Sciences Major Programme IV - Culture 49,302,800 48,732, ,850 31,377,000 29,995,888-1,381,112 18,808,000 17,071,202-1,736,798 34,842,800 33,495,403-1,347,397 Major Programme V - Communication and Information UNESCO Institute for Statistics 18,924,800 19,057,072 (132,272) Field - Management of decentralized programmes 31,532,300 39,766,530 (8,234,230) - Total, Part II.A 184,787, ,119,045 (8,366,502) 5,035,157 B. Participation Programme C. Programme Related Services 1. Coordination of action to benefit Africa 2,683,000 2,531, , Fellowships Programme 1,040, , , Public information 11,139,400 10,642, , Strategic planning and programming monitoring 5,436,500 4,964, , Budget preparation and monitoring 4,059,300 4,040,453-18,847 Total, Part II.C 24,358,700 23,037,360-1,321,340 TOTAL, PART II 209,146, ,156,405 (8,366,502) 6,356,497 PART III SUPPORT FOR PROGRAMME EXECUTION AND ADMINISTRATION A. Field management and coordination 3,988,200 5,201,744 (1,213,544) - B. External relations and cooperation 19,386,400 16,990,642-2,395,758 C. Human resources management 16,156,800 17,305,508 (1,148,708) - D. Administration, maintenance and renovation of Headquarters premises 68,493,000 68,046, ,313 TOTAL, PART III 108,024, ,544,581 (2,362,252) 2,842,071 TOTAL, PARTS I - III 335,440, ,866,805 (10,809,260) 11,383,055 Reserve for reclassifications PART IV ANTICIPATED COST INCREASES TOTAL 335,440, ,866,805 (10,809,260) 11,383,055

10 175 EX/31 page 9 Activity costs 10. The most significant deficits in activity costs arose under Part I Direction and Part III D. Administration, maintenance and renovation of Headquarters premises (ADM) : Direction: ADM: This deficit of $0.9 million is mainly due to the activity held under the Office of the Director-General concerning the celebration of the 60th anniversary of UNESCO in The deficit of $1.9 million was mainly due to the additional funds requirements which were dedicated to meet the most urgent security measures at Headquarters. The deficit under the activity costs including the above items was covered by surplus that had arisen under other appropriation lines, resulting in an overall deficit of $0.2 million under the activity costs. This $0.2 million deficit under the activity costs was offset by surplus that had arisen in staff cots. The adjustments made for the purpose of closing the accounts for activity costs are summarized in Table 3.

11 175 EX/31 page 10 TABLE 3 END-OF-BIENNIUM ADJUSTMENTS UNDER ACTIVITY COSTS Main Appropriation Line 32 C/5 Approved as Adjusted Expenditures/ Undelivered orders as at TO (Deficit) END-OF-BIENNIUM ADJUSTMENTS $ $ $ $ PART I GENERAL POLICY AND DIRECTION A. Governing bodies 1. General Conference 5,755,300 5,506, , Executive Board 6,267,100 6,033, ,183 Total, Part I.A 12,022,400 11,540, ,965 B. Direction 2,470,900 3,353,867 (882,967) (Including: Directorate; Office of the Director-General; Internal Oversight; International Standards and Legal Affairs) FROM (Unspent balance) C. Participation in the Joint Machinery of the United Nations System 7,355,863 6,699, ,401 PART II PROGRAMMES AND PROGRAMME RELATED SERVICES TOTAL, PART I 21,849,163 21,593,764 (882,967) 1,138,366 A. Programmes Major Programme I - Education Major Programme II - Natural Sciences Major Programme III - Social and Human Sciences Major Programme IV - Culture 64,299,674 64,291,136-8,538 30,454,043 29,609, ,023 15,274,132 15,209,247-64,885 20,855,577 20,609, ,139 Major Programme V - Communication and Information UNESCO Institute for Statistics 17,587,068 17,555,774-31,294 9,020,000 9,020, Field - Management of decentralized programmes Total, Part II.A 157,490, ,294,615-1,195,879 B. Participation Programme 23,000,000 23,064,621 (64,621) - C. Programme Related Services 1. Coordination of action to benefit Africa 581, ,328 (165,528) - 2. Fellowships Programme 1,518,600 1,205, , Public information 4,258,500 4,239,074-19, Strategic planning and programming monitoring 2,218,566 2,212,696-5, Budget preparation and monitoring 206, ,692 (218,692) Total, Part II.C 8,783,466 8,829,670 (384,220) 338,016 TOTAL, PART II 189,273, ,188,906 (448,841) 1,533,895 PART III SUPPORT FOR PROGRAMME EXECUTION AND ADMINISTRATION A. Field management and coordination 17,264,790 17,547,595 (282,805) - B. External relations and cooperation 4,372,400 4,114, ,365 C. Human resources management 16,030,100 15,659, ,120 D. Administration, maintenance and renovation of Headquarters premises 36,531,063 38,419,669 (1,888,606) - TOTAL, PART III 74,198,353 75,741,279 (2,171,411) 628,485 TOTAL, PARTS I - III 285,321, ,523,949 (3,503,219) 3,300,746 Reserve for reclassifications PART IV ANTICIPATED COST INCREASES TOTAL 285,321, ,523,949 (3,503,219) 3,300,746

12 175 EX/31 page The global surplus/(deficit) situation can be summarized as follows: Staff costs Activity costs Total Part I General policy and direction $2.1 $0.2 $2.3 Part II Programmes and programme related services Part III Support for programme execution and administration ($2.0) $1.1 ($0.9) $0.5 ($1.5) ($1.0) TOTAL $0.6 ($0.2) $0.4 Globally speaking, this implies that the appropriation for Major Programme activities including field staff resources required to implement these programmes were fully utilized, and the slight overspending was compensated by the surplus realized under General policy and direction (Part I). Overall, the Organization has resulted in a slight surplus of $0.4 million.

13 175 EX/31 page 12 III DRAFT DECISION 12. After examining the report of the Director-General on the budgetary situation of the Organization for after the closure of accounts for , the Executive Board may wish to adopt a decision along the following lines: The Executive Board, 1. Recalling the Appropriation Resolution for (32 C/Resolution 85, para. A(b)) which authorizes the Director-General to accept voluntary contributions, donations and contributions from governments towards the cost of established field units, reporting thereon to the Members of the Executive Board in writing at the session following such action, 2. Recalling also that the same Appropriation Resolution (para. A(f)) authorizes the Director-General, in urgent and special circumstances, to make transfers between appropriation lines, informing the Members of the Executive Board in writing, at the session following such action, of the details of the transfers made and the reasons therefore, 3. Having examined the Director-General's report on the budgetary situation of the Organization for after the closure of accounts (175 EX/31), 4. Takes note of the transfers made between appropriation lines to close the accounts for

14 175 EX/31 page 13 ANNEX (PART A) STATUS OF THE REGULAR BUDGET FOR AS AT 31 DECEMBER 2005 Appropriation line PART I GENERAL POLICY AND DIRECTION 32 C/5 Expenditures / UNSPENT BLANCE/(SHORTFALL) Authorized Additional Approved as Undelivered 32 C/5 Approved Carryover funds Transfer Appropriation Adjusted Orders as at ACTIVITIES STAFF TOTAL AND PP $ $ $ $ $ $ $ $ $ A. Governing bodies 1. General Conference 6,135, ,100 19,200-6,418,600 6,058, , , , Executive Board 7,958,700 35,300 (265,400) - 7,728,600 7,575,923 (80,506) 233, ,677 Total, Part I.A 14,094, ,400 (246,200) - 14,147,200 13,634,573 30, , ,627 B. Direction 18,378, ,200-18,615,900 17,425,548 2,073,319 (882,967) 1,190,352 (Including: Directorate; Office of the Director-General; Internal Oversight; International Standards and Legal Affairs) C. Participation in the Joint Machinery of the United Nations System 3,579, ,363 3,309,000-7,355,863 6,699, , ,401 PART II PROGRAMMES AND PROGRAMME RELATED SERVICES TOTAL, PART I 36,052, ,763 3,300,000-40,118,963 37,759,583 2,103, ,399 2,359,380 A. Programmes Major Programme I - Education Major Programme II - Natural Sciences Major Programme III - Social and Human Sciences Major Programme IV - Culture Major Programme V - Communication and Information UNESCO Institute for Statistics 109,869, ,500 1,087,200 2,271, ,602, ,024, ,850 8, ,388 58,231, , ,700 2,642,243 61,831,043 59,604,908 1,381, ,023 2,226,135 33,336,900 82, , ,032 34,082,132 32,280,449 1,736,798 64,885 1,801,683 53,380,200 71, ,400 1,371,777 55,698,377 54,104,841 1,347, ,139 1,593,536 35,541,400 56, , ,368 36,511,868 36,612,846 (132,272) 31,294 (100,978) 9,020, ,020,000 9,020, Field - Management of decentralized programmes 32,215,900 - (683,600) - 31,532,300 39,766,530 (8,234,230) - (8,234,230) Total, Part II.A 331,595, ,600 2,997,300 6,927, ,278, ,413,660 (3,331,345) 1,195,879 (2,135,466) B. Participation Programme 23,000, ,000,000 23,064,621 - (64,621) (64,621) C. Programme Related Services 1. Coordination of action to benefit Africa 3,164, ,800-3,264,800 3,278, ,452 (165,528) (14,076) 2. Fellowships Programme 2,522,600-36,500-2,559,100 2,063, , , , Public information 14,516, ,800-15,397,900 14,881, ,549 19, , Strategic planning and programming monitoring 7,068,400 17, , ,166 7,655,066 7,177, ,802 5, , Budget preparation and monitoring 4,154, ,100-4,265,300 4,465,145 18,847 (218,692) (199,845) Total, Part II.C 31,425,300 17,300 1,282, ,166 33,142,166 31,867,030 1,321,340 (46,204) 1,275,136 PART III SUPPORT FOR PROGRAMME EXECUTION AND ADMINISTRATION TOTAL, PART II 386,020, ,900 4,279,700 7,344, ,420, ,345,311 (2,010,005) 1,085,054 (924,951) A. Field management and coordination 18,511,000 12,100 1,422,100 1,307,790 21,252,990 22,749,339 (1,213,544) (282,805) (1,496,349) B. External relations and cooperation 23,194,000 22, ,700-23,758,800 21,104,677 2,395, ,365 2,654,123 C. Human resources management 30,800,300-1,386,600-32,186,900 32,965,488 (1,148,708) 370,120 (778,588) D. Administration, maintenance and renovation of Headquarters premises 100,164, ,063 4,326, ,024, ,466, ,313 (1,888,606) (1,442,293) TOTAL, PART III 172,670, ,263 7,677,600 1,307, ,222, ,285, ,819 (1,542,926) (1,063,107) TOTAL, PARTS I - III 594,742,700 2,109,926 15,257,300 8,652, ,762, ,390, ,795 (202,473) 371,322 Reserve for reclassifications 1,500,000 - (1,500,000) PART IV ANTICIPATED COST INCREASES 13,757,300 - (13,757,300) TOTAL 610,000,000 2,109,926-8,652, ,762, ,390, ,795 (202,473) 371,322

15 175 EX/31 page 14 PART B MANAGEMENT CHART FOR PROGRAMME EXECUTION IN BASED ON THE CLOSED ACCOUNTS TABLE 1 OVERALL IMPLEMENTATION BY PRINCIPAL APPROPRIATION LINE Regular budget and extrabudgetary resources (Expenditures including staff costs and Participation Programme as at 31 December 2005) Table 1 presents a holistic status of execution for regular and extrabudgetary resources, showing the overall implementation by principal appropriation line both for regular budget and extrabudgetary resources, including staff costs and Participation Programme, therefore covering all funds related to each appropriation line. With regard to the regular budget, the table includes, as usual, Part IV (Anticipated Cost Increases) and takes into account the budgetary transfers made therefrom to the other parts of the budget that have already been approved by the Executive Board at its 169th, 170th, 171st and 172nd sessions. Therefore, the columns Work plan allocation does not indicate any amount for Part IV as Part IV has been distributed to the other Appropriation lines. The Work plan allocation also takes into account the additional appropriations of donations approved by the Executive Board. For extrabudgetary resources, allocations and expenditures relate to one-year (2005) amounts. Comments: The overall expenditure rate of regular budget as at the end of the biennium is 99.9% resulting in a slight surplus of $371,222, which is less than 0.06% of the total appropriation for the biennium. The actual expenditure rate for extrabudgetary resources stands at 75.8%, which is approximately the same rate as 2004.

16 175 EX/31 page 15 TABLE 1 OVERALL IMPLEMENTATION BY PRINCIPAL APPROPRIATION LINE (Regular budget and extrabudgetary funds including staff costs and Participation Programme) 1 January 2004 to 31 December 2005* (in thousands of US dollars) Regular budget Extrabudgetary resources PART I Appropriation Line GENERAL POLICY AND DIRECTION 32 C/5 Approved Work plan allocation Expenditure (delivered/ unliquidated) expenditure Allocation Expenditure (delivered/ unliquidated) expenditure $ $ $ % $ $ % A. Governing bodies 1. General Conference 6,135 6,419 6, Executive Board 7,959 7,729 7, Total, Part I.A 14,094 14,147 13, B. Direction 3. Directorate 2,428 2,465 2, Office of the Director-General 7,116 7,272 7, ,662 2, Internal Oversight 5,504 5,580 3, International Standards and Legal Affairs 3,331 3,299 3, Total, Part I.B 18,379 18,616 17, ,307 3, C. Participation in the Joint Machinery of the United Nations System 3,580 7,356 6, TOTAL, PART I 36,052 40,119 37, ,307 3, PART II PROGRAMMES AND PROGRAMME RELATED SERVICES A. Programmes I Education 109, , , , , II Natural sciences 58,232 61,831 59, ,161 45, III Social and human sciences 33,337 34,082 32, ,546 34, IV Culture 53,380 55,698 54, ,613 35, V Communication and information 35,541 36,512 36, ,863 14, UNESCO Institute for Statistics 9,020 9,020 9, Field Management of decentralized programmes 32,216 31,532 39, Total, Part II.A 331, , , , , B. Participation Programme 23,000 23,000 23, C. Programme Related Services 1. Coordination of action to benefit Africa 3,164 3,265 3, Fellowships Programme 2,523 2,559 2, Public Information 14,516 15,398 14, Strategic planning and programme monitoring 7,068 7,655 7, , Budget preparation and monitoring 4,154 4,265 4, Total, Part II.C 31,425 33,142 31, ,742 1, TOTAL, PART II 386, , , , , PART III SUPPORT FOR PROGRAMME EXECUTION AND ADMINISTRATION A. Field management and coordination 18,511 21,253 22, B. External relations and cooperation 23,194 23,759 21, ,236 3, C. Human resources management 30,800 32,187 32, D. Administration, maintenance and renovation of Headquarters premises 100, , , TOTAL, PART III 172, , , ,959 3, TOTAL, PARTS I - III 594, , , , , Reserve for reclassifications 1, PART IV ANTICIPATED COST INCREASES 13, TOTAL, PARTS I - IV 610, , , , , * For extrabudgetary resources figures are for the period from 1 January 2005 to 31 December 2005.

17 175 EX/31 page 16 TABLE 2(A) PROGRAMME IMPLEMENTATION BY PRINCIPAL APPROPRIATION LINE AND BY PRINCIPAL SOURCE OF FUNDING Regular budget and extrabudgetary resources (Expenditures excluding staff costs as at 31 December 2005) Table 2 presents a holistic status of the execution of programme activities for regular and extrabudgetary resources, by principal appropriation line and by principal source of funding (figures under Regular budget excludes staff costs). The table includes Part IV (Anticipated Cost Increases) and takes into account the budgetary transfers made therefrom to the other Parts of the budget that have already been approved by the Executive Board at its 169th, 170th, 171st and 172nd sessions as well as the additional appropriations of donations approved so far by the Executive Board. For extrabudgetary resources, allocations and expenditures relate to one-year (2005) amounts. Comments: Regular budget The overall expenditure rate of the regular budget activities (Parts I-III) as at the end of the biennium stands at 100.1%, resulting in a slight deficit of $202,473 (which was covered by a surplus under the staff costs). Explanations are provided below for expenditure rates which are higher than 115% or less than 85%: Office of the Director-General (330.1%) The high expenditure rate accounts for the expenses of $800,000 activity costs related to celebration of the 60th anniversary of UNESCO in 2005 and $200,000 operating costs (temporary assistance) for the Direction for which no provision was built in the budget. Coordination of action to benefit Africa (128.5%) The high expenditure rate is due to the additional expenses authorized by the College of ADGs/CBF as exceptional measures for Benin activities and for the Exposition for the 6th African Union Summit in Sudan. Fellowship Programme (79.4%) In compliance with fellowship awards standards and policies, such as acceptance from the host countries, validity and qualification of the candidates, fewer fellowships have been approved by the selection committee in July and November 2005 and this has resulted in a low expenditure in activities under Fellowship Programme. Budget preparation and monitoring (206.2%) In order to provide the Bureau of the Budget (BB) with sufficient expertise required for the task of rationalizing the Organization s cost recovery policy related to extrabudgetary projects, hiring of experienced consultants was indispensable with the necessary financing. Although it was

18 175 EX/31 page 17 initially intended to cover these costs partially by funds under ERC/CFS (Part III B) dealing with cooperation with extrabudgetary funding sources, it was decided that for the sake of transparency the costs be covered under BB without any transfer of budget. Thus a deficit of around $0.2 million has occurred under BB, and on the other hand a surplus of the same amount under ERC which offsets the deficit. This amount of $0.2 million represents around 100% of initial activity budget of BB, but only 2.2% of ERC s budget. Extrabudgetary resources Administration (42.5%) Administration sector shows a low expenditure rate of 42.5%. This is mainly due to the fact that some projects should have been financially closed at the end of 2005 and thus the allocation should have been reduced accordingly. This would have resulted in much higher expenditure rate. Nevertheless, it should be noted that, given the very small amount of extrabudgetary allocation for Administration ($0.2 million) which represents only 0.06% of the total allocation, the overall expenditure rate of 75.8% remains valid.

19 PART I GENERAL POLICY AND DIRECTION TABLE 2 (A) PROGRAMME IMPLEMENTATION BY PRINCIPAL APPROPRIATION LINE AND BY PRINCIPAL SOURCE OF FUNDING Regular budget (excluding staff costs) and extrabudgetary funds 1 January 2004 to 31 December 2005* (in thousands of US dollars) Appropriation Line 32 C/5 Approved Regular budget Work plan allocation Expenditure (delivered/ unliquidated) expenditure Allocation Extrabudgetary resources United Nations sources Other sources Expenditure (delivered/ unliquidated) expenditure Allocation Expenditure (delivered/ unliquidated) expenditure $ $ $ % $ $ % $ $ % 175 EX/31 page 18 A. Governing bodies 1. General Conference 5,491 5,755 5, Executive Board 6,532 6,267 6, Total, Part I.A 12,023 12,022 11, B. Direction 3. Directorate Office of the Director-General , ,662 2, Internal Oversight 1,312 1,312 1, International standards and legal affairs Total, Part I.B 2,602 2,471 3, ,307 3, C. Participation in the Joint Machinery of the United Nations System 3,580 7,356 6, TOTAL, PART I 18,204 21,849 21, ,307 3, PART II PROGRAMMES AND PROGRAMME RELATED SERVICES A. Programmes I Education 61,653 64,300 64, ,369 19, , , II Natural sciences 27,637 30,454 29, ,101 5, ,060 39, III Social and human sciences 14,994 15,274 15, ,261 34, IV Culture 19,413 20,856 20, ,876 6, ,737 28, V Communication and information 17,087 17,587 17, ,435 3, ,428 11, UNESCO Institute for Statistics 9,020 9,020 9, Total, Part II.A 149, , , ,066 35, , , B. Participation Programme 23,000 23,000 23, C. Programme Related Services 1. Coordination of action to benefit Africa Fellowships Programme 1,519 1,519 1, Public Information 4,130 4,259 4, Strategic planning and programme monitoring 1,784 2,219 2, , Budget preparation and monitoring Total, Part II.C 8,221 8,783 8, ,742 1, TOTAL, PART II 181, , , ,066 35, , , PART III SUPPORT FOR PROGRAMME EXECUTION AND ADMINISTRATION A. Field management and coordination 14,639 17,265 17, B. External relations and cooperation 4,350 4,372 4, ,236 3, C. Human resources management 15,302 16,030 15, D. Administration, maintenance and renovation of Headquarters premises 33,876 36,531 38, TOTAL, PART III 68,167 74,198 75, ,959 3, TOTAL, PARTS I - III 267, , , ,066 35, , , PART IV ANTICIPATED COST INCREASES 6, TOTAL, PARTS I - IV 273, , , ,066 35, , , * For extrabudgetary resources, figures are for the period from 1 January 2005 to 31 December 2005.

20 175 EX/31 page 19 TABLE 2(B) PROGRAMME IMPLEMENTATION BY PRINCIPAL APPROPRIATION LINE ON THE CARRY-OVER FUNDS (REGULAR BUDGET) (Expenditures as at 31 December 2005) In its 169th session, the Executive Board approved the carry-over of the unspent balance of $2,109,926 from the biennium in order to: regularize the liabilities arising from the cancellation of unliquidated obligations in the biennium ($1,175,200); finance a portion of the costs required for reinforcing security measures ($934,000). Table 2(B) represents the programme implementation of these carry-over funds. Comments: As far as the carry over funds earmarked for the reinforcement of security measures ($934,000), the funds have been fully utilized. As for the funds related to the regularization of liabilities, explanations are provided below for the sectors which did not fully utilized the carryover funds: Education (90.8%) The urgent payments for a meeting in BREDA required already in early 2004, originally foreseen under the carry-over funds, were financed from some alternative funding sources as carryover funds were not yet available at that stage. Natural Sciences (64.8%) and Culture (89.2%) The tasks foreseen under the carryover funds have been executed with less cost than originally foreseen. TABLE 2(C) PROGRAMME IMPLEMENTATION BY PRINCIPAL APPROPRIATION LINE ON THE ASSESSED CONTRIBUTION FROM THE UNITED STATES OF AMERICA (Expenditures as at 31 December 2005) At its 32nd session, the General Conference welcomed the return of the United States of America with effect from 1 October 2003 and took note of the amount of $15,093,141 as its assessed contribution from 1 October to 31 December Further, it invited the Director-General to report to the Executive Board on the implementation of the plan of action to be funded from this contribution. Accordingly Table 2(C) presents the status of implementation of these funds. It should be noted that this contribution is utilized through a special account mechanism, and therefore operates on a multi-year basis. Comments Explanations are provided below for expenditure rates, which are higher than 115% or less than 85%:

21 175 EX/31 page 20 Education (46.7%) Implementation has taken place in accordance with the implementation initially planned for the eight recipient countries of the Programme except for Afghanistan. Since Afghanistan is the country with the highest budget allocation of the Programme funds, the low implementation in this country has lowered disproportionably the overall implementation rate. Taking out Afghanistan, the implementation rate for the remaining countries is almost 80% as initially estimated. Although a Memorandum of Understanding (MoU) was signed between the Director General the Afghan Minister for Education in July 2004, priority project profiles prepared by the then Minister were subsequently modified by his successors. The shifting priorities and a change in Ministry of Education staff have slowed significantly the implementation of this programme. Culture (40.1%) The expenditure rate went up progressively from 18.8% as at 30 June 2005 (172 EX/4, Part II, page 21) to 40.1% as of the date of this report. It is worth mentioning that the programme implementation was significantly delayed as the work plans received from field offices had to be refined and further elaborated before they could be approved. The approval of the work plans includes the validation by an outside expert, who advises on the quality and feasibility of the projects in conjunction with ICOM. Consequently, the funds were not made available until late The delay in the programme implementation mentioned above is particularly significant with respect to two projects handled by the Almaty Office, which will start only in 2006 since the work plans had to be reworked following a mission undertaken by two Russian experts. In addition, the project in Pakistan was delayed due to the earthquake that took place in 2005 and the project in Accra is still not ready for implementation since the Office has not submitted satisfactory work plans that would merit validation. WHC (63.2%) The expenditure rate went down from 94.2% as at 30 June 2005 (172 EX/4, Part II, page 21) to 63.2% as funds were un-obligated to allow for the reprogramming of funds towards new activities in such as the reinforcement of capacity building in the protection and management of world heritage sites particularly those located in Africa and those in danger. After the funds were redeployed into the new activities, the expenditure rate on the old activities is now 97%.

22 175 EX/31 page 21 TABLE 2 (B) PROGRAMME IMPLEMENTATION BY PRINCIPAL APPROPRIATION LINE ON THE CARRYOVER FUNDS Regular budget 1 January 2004 to 31 December 2005 (in thousands of US dollars) Appropriation Line Work plan allocation Expenditure (delivered/ unliquidated) expenditure PART I GENERAL POLICY AND DIRECTION $ $ % A. Governing bodies 1. General Conference Executive Board Total, Part I.A B. Direction 3. Directorate Office of the Director-General Internal Oversight International standards and legal affairs Total, Part I.B C. Participation in the Joint Machinery of the United Nations System TOTAL, PART I PART II PROGRAMMES AND PROGRAMME RELATED SERVICES A. Programmes I Education II Natural sciences III Social and human sciences IV Culture V Communication and information UNESCO Institute for Statistics Total, Part II.A C. Programme Related Services 1. Coordination of action to benefit Africa Fellowships Programme Public Information Strategic planning and programme monitoring Budget preparation and monitoring Total, Part II.C TOTAL, PART II PART III SUPPORT FOR PROGRAMME EXECUTION AND ADMINISTRATION A. Field management and coordination B. External relations and cooperation C. Human resources management D. Administration, maintenance and renovation of Headquarters premises TOTAL, PART III TOTAL, PART I -III 2,110 2, TABLE 2 (C) PROGRAMME IMPLEMENTATION BY PRINCIPAL APPROPRIATION LINE ON THE CONTRIBUTION FROM THE UNITED STATES OF AMERICA Regular budget 1 January 2004 to 31 December 2005 (in thousands of US dollars) Appropriation Line Work plan allocation Expenditure (delivered/ unliquidated) expenditure $ $ % PART II PROGRAMMES AND PROGRAMME RELATED SERVICES A. Programmes I Education 8,401 3, II Natural sciences III Social and human sciences IV Culture 3,286 1, World Heritage Centre 1, V Communication and information UNESCO Institute for Statistics Total, Part II.A 12,687 5, Non-allocated balance 2, TOTAL 15,093 5,

23 175 EX/31 page 22 TABLE 3 IMPLEMENTATION OF DECENTRALIZED FUNDS BY PRINCIPAL APPROPRIATION LINE AND BY REGION Regular budget and extrabudgetary resources (Programme activity expenditures in the field, excluding staff costs, as at 31 December 2005) Table 3 shows the implementation of decentralized funds as at 31 December 2005, broken down by region, for Part II (Programme and Programme Related Services) and Part III (Support for Programme Execution and Administration). With a view to presenting an integrated status of execution for regular and extrabudgetary resources, this table shows both sources of funding. For extrabudgetary resources, allocations and expenditures relate to one-year amounts. Comments: Decentralized funds represent 41.5% of total regular budget for activities and show an expenditure rate of 98.5% as at 31 December This rate of 98.5% can be considered a satisfactory implementation level of decentralized programmes. For the Education Sector, the decentralized funds exclude the financial allocations for Institutes IIEP, IBE, IITE, UIE, as the mechanism of transferring their financial allocations to special accounts does not provide programme distribution by region. For the same reason, the financial allocation for ICTP is excluded from the decentralized funds under Natural Sciences. On the other hand, financial allocations for IICBA and IESALC are included in Africa and Latin America regions respectively as programmes of these Institutes are fully implemented in these regions. Under Programme and Programme Related Services (Part II), 53.3% of total regular budget allocation for activities is decentralized to field units where the expenditure rate stands at 98.6%. The actual decentralization rates for each Sector can be compared with those of 32 C/5 Approved, as follows: Sector 32 C/5 Approved decentralization rate Actual decentralization rate Education (excluding IIEP, IBE, IITE and UIE) Natural Science (excluding ICTP) 54.0% 55.0% 27.2% 31.6% Social Human Sciences 36.2% 34.9% Culture 44.9% 44.2% Communication and Information 46.9% 53.0%

24 TABLE 3 IMPLEMENTATION OF DECENTRALIZED FUNDS BY PRINCIPAL APPROPRIATION LINE AND REGION (excluding staff costs) 1 January 2004 to 31 December 2005* (in thousands of US dollars) Extrabudgetary Resources Principal Appropriation Line Total programme allocation (HQ and field) (Work plans) Allocation for all field units (Work plans) decentralization Breakdown of decentralized allocation by region Expenditure (delivered/ unliquidated) expenditure Total programme resources (HQ and field) Allocation for all field units decentralization Breakdown of decentralized allocation by region Expenditure (delivered/ unliquidated) expenditure % % % $ $ % % $ % PART I GENERAL POLICY AND DIRECTION 21, , PART II PROGRAMMES AND PROGRAMME RELATED SERVICES A. Programmes I Education 64,300 35, , , , , Africa 13, , , , Arab States 5, , , , Asia and Pacific 8, , , , Europe and North America 1, , , , Latin America and the Carribean 6, , , , II Natural sciences 30,454 9, , ,161 41, , Africa 2, , Arab States 1, , , , Asia and Pacific 2, , , Europe and North America , , Latin America and the Carribean 2, , , , III Social and human sciences 15,274 5, , ,546 36, , Africa 1, , Arab States Asia and Pacific 1, , Europe and North America Latin America and the Carribean 1, , , , IV Culture 20,856 9, , ,613 17, , Africa 2, , , Arab States 1, , , , Asia and Pacific 2, , , , Europe and North America , , Latin America and the Carribean 1, , , , V Communication and information 17,587 9, , ,863 15, , Africa 2, , , , Arab States 1, , , , Asia and Pacific 2, , , , Europe and North America Latin America and the Carribean 2, , , , UNESCO Institute for Statistics 9,020 9, , Europe and North America 9,020 9, Total, Part II.A 157,491 77, , , , , B. Participation Programme 23,000 23, , EX/31 page 23 *For extrabudgetary resources figures are for the period from 1 January 2005 to 31 December 2005